Pound Sterling Swedish Krona (GBP/SEK) Exchange Rate Jumps as British Retail Sales ‘Stabilise’
The Pound Sterling Swedish Krona (GBP/SEK) exchange rate rallied by around 0.5% on Tuesday. This left the pairing trading at around 11.2929Kr.
Sterling rallied today, still supported by unexpected upbeat Brexit comments from the bloc’s chief Brexit negotiator
Meanwhile, the Pound jumped after data revealed a gauge of retail sales jumped to its highest level in over a year this month.
The survey from the Confederation of British Industry showed sales jumped as more of the economy reopened after the coronavirus lockdown.
The CBI’s monthly retail sales balance jumped from -37 to +4 in June. This buoyed GBP as this is the highest the survey has been since April 2019.
However, this still only suggests Britain will see modest annual growth in sales. Added to this, a survey of 61 retail chains revealed they expect weaker performance in August.
Commenting on the latest data from the CBI, its chief economist Rain Newton-Smith said:
‘It’s great to see retail sales stabilise this month, but this doesn’t tell the whole story.
‘This crisis has created winners and losers within the retail sector and for some businesses the picture remains bleak.’
Swedish Krona (SEK) Struggles despite Upbeat Retail Sales
The Swedish Krona struggled to make gains today despite data showing June’s retail sales figures rebounded more than expected.
Month-on-month sales jumped 1% in Sweden, while annual sales rose to 3.5%. Sales increased more than forecast and returned to levels seen before the coronavirus pandemic.
Monthly sales jumped by the highest amount since January while annual sales hit a four month high, although this did little to boost SEK.
Meanwhile, further data showed Sweden’s trade balance widened to SEK4.90 billion in June from SEK1.6 billion just a year earlier.
Statistics showed that imports slumped by -5.3% compared to June 2019 due to lower purchases from the European Union.
Added to this, exports fell by around -2.5% as sales to the EU slumped by around -14.4%, although sales to non-EU countries largely offset this, rising by 14.2%.
Pound Swedish Krona Outlook: Swedish Confidence in Focus
Looking ahead, the Pound (GBP) could make further gains against the Swedish Krona (SEK) as traders continue to focus on the latest Brexit negotiations.
Further upbeat reports about Brexit negotiations or optimistic comments from the European Union will boost GBP.
Meanwhile, the Swedish Krona could suffer further losses following the release of July’s consumer and business confidence.
If consumer and business confidence both slumps further than expected in July, it will dampen SEK sentiment. This will send the Pound Swedish Krona (GBP/SEK) exchange rate higher.